If you had $196,000 to invest in 1993, would you have bought a Toronto home — or invested it in the stock market?  ​Let’s break down exactly how both investments would have performed — first with no leverage, and then using the powerful leverage real estate provides.  A few things to consider, I have taken into account for taxes, and fluctuations in both markets, this is not a complete insight into every stock, but rather the stock market as a whole, same thing with real estate, averages are not true values.

📊 Investment A: SPY ETF - SPY (tracks the S&P 500) launched in 1993.

-Price in 1993: ~$43
-Price in 2025: ~$560
-$196,000 invested in 1993 = ~4,558 shares

2025 Value: $2,553,000 (including dividends reinvested)

Total Gain: +1,203%

CAGR: ~10.3%

🏠 Investment B: Toronto Real Estate (Single Home)

-Average home price in 1993: $196,000
-Average price in 2025: ~$1,140,000

Total Gain: +481%

CAGR: ~6.4%

⚖️ Verdict:  SPY ETF outperformed Toronto real estate if you bought a single home and held it with no mortgage or rental income.

This is where things get interesting. Real estate allows you to use leverage — putting 25% down and borrowing the rest.  We took the same scenario, but used a mortgage to finance the balance:

Using the same $196,000:

-25% down = $49,000 per property
 -$196,000 = enough for 4 homes
-1993 purchase value: $784,000 total

2025 market value: $4,560,000

Appreciation gain: $3,776,000

🏡 Rental Income:

-$1,000/month per home × 4 homes = $4,000/month
-378 months (1993–2025): $1,512,000
-After expenses (assume 40%): $907,200 net

🧮 Total Return:

-Property Value: $4,560,000
-Net Rental Income: $907,200

Total Wealth Created: $4,683,200

CAGR (approx.): ~11.7%

Stocks have historically delivered strong returns, especially when dividends are reinvested. But real estate — when leveraged properly and held long-term — can offer greater total wealth, thanks to:

If you’re serious about building wealth, real estate offers you something the stock market can’t: leverage and cash flow.  And if you need help in your journey, be sure to reach out to us here.